Getting a new car can be a lot of fun, and there are many drivers that trade in their cars often in order to get the latest and greatest models. There are several ways that you can get a new car. Most drivers decide to buy their cars outright by financing them and paying down the debt over time. Others decide to lease new cars. Here is a look at the differences between leasing and buying, as well as how to know which option is best for you.
The Benefits of Buying
Most drivers buy their cars. Even if you finance the purchase, you are still buying the car. Ultimately, you will own the car, provided that you pay the agreed upon value to the dealer. There are several benefits of buying a car. Like any other major investment that you own, a car can later be sold. Although buying a car upfront can be more expensive, you can make back a portion of your investment over the long term. Buying a car also reduces the number of restrictions that are placed on it letting you do what you want.
The downside to owning a car is that it costs more than leasing initially. When you buy, you have to produce a larger down payment than when you lease. Also, there is no guarantee that your car will retain any value over the long-term, and you may have trouble selling it in the future.
The Benefits of Leasing
Under the right circumstances, leasing is a good alternative to buying. When you lease, you make a smaller down payment than if you buy and keep up with the monthly payments over time. Most leasing agreements also cover maintenance costs and allow you to trade in your lease for a new one.
The downside to leasing is that you don’t own the car. That means that you have to meet all of the requirements of the lease that the dealer dictates, including meeting maintenance schedules and use limits for the vehicle. If you go over the mileage limit or otherwise violate the terms of the lease, you could face huge fines. In this way, having a leased car is more restrictive and can cost more than buying.
Which is Right for You?
In most cases, buying a new car is a better option than leasing. You will likely need the freedom from restrictions and the possibility of selling the car later on. However, drivers that don’t have a long commute, can take good care of a car, and like to trade in for the newest model often are better off leasing their cars. With a lease, you can trade in your car without depreciation so that you don’t lose money.
Kia of Vacaville has a lot of new models to choose from whether you are buying or leasing. Stop by today to see what is available and to find out more about your leasing options.
Image via Flickr by free pictures of money licensed via CC BY 2.0
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